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Acccounting Rations
Common Ratios
| Question | Answer |
|---|---|
| Net Profit Margin | (Net Income/Net Sales Revenue)*100 Profitability |
| Gross Profit Percentage | (Net Sales Revenue - Cost of Goods Sold)/Net Sales Revenue Profitability |
| Asset Turnover | Net Sales Revenue/Average Total Assets Profitability |
| Fixed Asset Turnover | Net Sales Revenue/Average Fixed Assets Profitability |
| Returns on Equity(ROE) | (Net Income/Average Stockholder Equity)*100 Profitability |
| Earnings per Share(EPS) | Net Income/Average # of Common Stock Outstanding Profitability |
| Quality of Income | Net Cash from Operations/Net Income Profitability |
| Price/Earnings Ratio | Stock Price/EPS Profitability |
| Receivables Turnover | Net Sales Revenue/Average Net Receivables Liquidity |
| Days to Collect | 365/Receivables Turnover Liquidity |
| Inventory Turnover | Cost of Goods Sold/Average Inventory Liquidity |
| Days to Sell | 365/Inventory Turnover Liquidity |
| Current Ratio | Current Assets/Current Liabilities Liquidity |
| Quick Ratio | (Cash+Short Term Investments+ Net Acct Receivables)/Current Liabilities Liquidity |
| Debt to Assets | Total Liabilities/Total Assets Solvency |
| Times Interest Earned | (Net Income+Interest Expense+Income Tax Expense)/Interest Expense Solvency |
| Capital Acquisitions Ratio | Net Cash from Operations/Cash Paid for Property and Equipment Solvency |